The Institute of Public Accountants has criticised the government’s intention to impose a levy on SMSF trustees to fund the CSLR.
The Institute of Public Accountants (IPA) has questioned the long-term viability of the Compensation Scheme of Last Resort (CSLR) and confirmed its opposition to the government’s intention of imposing a levy on SMSF trustees to fund it.
“The Compensation Scheme of Last Resort … is broken and is not sustainable,” IPA advocacy and emerging policy general manager Michael Davison said.
However, Davison acknowledged amending the CSLR framework to determine compensation amounts based on actual losses, eliminating the ‘but for’ provision, was a positive development, but maintained including SMSF trustees in the monetary support of the consumer protection measure is imprudent.
“Removing the ‘but for’ provision where a consumer may be compensated for potential losses, and not actual capital losses, will help, but forcing SMSF trustees to pay a levy is grossly unfair,” he indicated.
“SMSF members are no different to any other retail investor. They are individuals or families who just happen to invest in their retirement through a specific type of government-approved savings vehicle. They have been targeted by these predatory schemes and are victims just like any other retail investor.
“SMSF trustees invest their life savings, often based on licensed financial advice – which is regulated by ASIC – just like any other retail investor. They entrust their savings to the product providers and financial advisers and expect them to act in their best interests. They should not have to insure their own savings in case there is misconduct or product failure caused by others, which they have no control over.”
With regard to the introduction of the new class of adviser, he supported the idea, but was critical of its limited application.
“The financial adviser population has halved and it is difficult for consumers to access quality affordable financial advice. However, limiting the new class of adviser to superannuation funds and insurers is a missed opportunity,” he noted.
“There is a large pool of qualified professionals, such as accountants, that could be utilised to provide limited or scaled financial advice to consumers, giving them more opportunities to access quality affordable professional advice.”
By: Darin Tyson-Chan | August 24, 2026 | smsfadviser.com
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